Pub. 14 2023 Issue 2

• Establish a reporting procedure that refers all suspicious wire transfer requests to a higher level of authority for confirmation/ processing; • Require a dual telephone confirmation procedure where the financial institution calls the home phone of the customer as well as an alternate number, such as a mobile phone or work phone; • Establish an automatic two-day holding pattern anytime a request is made to initiate a wire transfer from a HELOC account to a foreign bank account within which time the financial institution ensures accurate verification and deters fraudsters seeking immediate processing; • Verify change of address or phone number requests with a call to the customer’s phone number on file; • Customize specific and unique verification questions and procedures with an account holder/ customer that can only be modified in person; and • Consider performing a verification call back when a purported customer calls the bank to set up online banking for the first time. Technology has made it easier than ever for bad actors to obtain data that is commonly used by financial institutions to verify the identity of their customers. That’s why financial institutions must utilize robust authentication procedures to protect their customers — and themselves — from wire transfer fraud. This includes greater awareness, updated and vigilant policies, procedures and training, and implementing imaginative and unique verification procedures to help reduce the risk of loss arising out of wire transfer fraud targeting HELOC accounts.  Travelers is committed to managing and mitigating risks and exposures and does so backed by financial stability and a dedicated team — from underwriters to claim professionals — whose mission is to insure and protect a company’s assets. For more information, visit travelers.com. Technology has made it easier than ever for bad actors to obtain data that is commonly used by financial institutions to verify the identity of their customers. 17 West Virginia Banker

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